President Umaru Musa Yar’Adua and the 36 governors took the decision at an emergency meeting in Abuja to work out solutions to the food crises.

Food prices have bee soaring as part of the global food crises. In Nigeria, a bag of rice costs between N10,000 and N12,000 – (round and about $90) up from about N5,500 some months ago. The money is to be released immediately from the Natural Resources Fund (NRF)

The government also approved the immediate release of about 11,000 metric tones of grains from the Federal Government Strategic Reserve. That will be in addition to over 40 million metric tones earlier released from the reserve.

Addressing journalists after the meeting, Ondo State governor, Dr. Olusegun Agagu stated that the N80 billion is part of the fund accumulated annually from the Federation Account and kept in a special account called the NRF

Dr. Agagu said, “The whole essence of this importation in the short term is to create availability, to reduce the skyrocketing price. A bag of rice goes for between N10,000 and N12,000. This is to ensure that the high price is brought down because by the term our rice comes; we will be selling at half that price for the good of our people.

“We will ensure that our people get it at rock bottom price where it should normally be. In order words, the rice may arrive at about N5,000 per bag or less, and so those who are hoarding may have no other option than to release them.”

Dr. Agagu also state that, “In the medium term that is after three months, revolutionary steps will be taken to address that challenge of food production and food security in Nigeria. In this regard, the Federal Government, through the Ministry of Agriculture and Water Resources with the state and Research Institutes, is to ensure that Nigeria will not produce only enough food for her self but should be in a position to export to other countries.”


Keywords: nigeria business import food_crisis